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If a firm has predictable cyclical or seasonal cash flows it can maintain a consistent adequate cash balance and use bank loans and selling marketable
If a firm has predictable cyclical or seasonal cash flows it can
maintain a consistent adequate cash balance and use bank loans and selling marketable securities to cover any predictable deficits | ||
always maintain enough cash to cover the highest cash demands- it must not risk default | ||
have a bank loan ready to cover all needed cash amounts | ||
carry minimal cash and use bank loans and selling marketable securities instead- since cash flows are predictable |
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